Under the Generation-Skipping Transfer (GST) tax rules, who is responsible for filing the GST tax return on a taxable termination?

Under the Generation-Skipping Transfer (GST) tax rules, who is responsible for filing the GST tax return on a taxable termination?

• A. The donor
• B. The beneficiary
• C. The grantor
• D. The trustee of the trust

Answer: (D)

In a taxable termination scenario, the responsibility falls on the fiduciary who administers the trust—the trustee. The trustee holds and manages the trust assets and has the duty to report the trust’s tax obligations to the IRS. When a termination is taxable, the GST tax liability is reported and any tax due is paid through that trust filing. The donor’s past transfer, the grantor’s role in a grantor-trust context, and the beneficiaries themselves do not take on this reporting duty, so the trustee is the appropriate filer for the GST return.

In a taxable termination scenario, the responsibility falls on the fiduciary who administers the trust—the trustee. The trustee holds and manages the trust assets and has the duty to report the trust’s tax obligations to the IRS. When a termination is taxable, the GST tax liability is reported and any tax due is paid through that trust filing. The donor’s past transfer, the grantor’s role in a grantor-trust context, and the beneficiaries themselves do not take on this reporting duty, so the trustee is the appropriate filer for the GST return.